MSF EXIT EXAM STUDY GUIDE

MSF EXIT EXAM STUDY GUIDE

Enterprise Value (EV) - Answers-market value of equity + market value of interest-cash

EV multiple - Answers-EV/EBITDA

Market Capitalization - Answers-share price x number of shares outstanding

Market to Book Ratio - Answers-market value of equity / book value of equity or market
value per share/book value per share

Price - Earnings Ratio (PE) - Answers-stock price per share/earnings per share

Inventory Turnover - Answers-Cost of goods sold/inventory at start of year

average days in inventory - Answers-365/inventory turnover ratio

Recievables Turnover - Answers-sales/receivables at start of year

Days' Sales in Receivables (DSO) - Answers-365/receivables turnover ratio

Debt to Equity Ratio - Answers-Total Debt/Total Equity

Total Debt Ratio - Answers-total liabilities/total assets

Times Interest Earned - Answers-EBIT/ interest expense

Cash Coverage Ratio - Answers-(EBIT + Depreciation) / Interest

profit margin - Answers-Net Income/Sales

EBITDA Margin - Answers-EBITDA/Sales

Return on Assets - Answers-Net Income/Total Assets

Return on Equity - Answers-Net Income/Total Equity

Asset Turnover - Answers-sales/total assets at start of year

Current Ratio - Answers-current assets/current liabilities (liquidity)

Quick Ratio - Answers-(Current Assets - Inventory) / Current Liabilities

Cash Ratio - Answers-cash + marketable securities / current liabilities

Payout Ratio - Answers-Cash Dividends/Net Income